Chapter 11 Bankruptcy in Augusta, GA

Chapter 11 Bankruptcy in Augusta, GA

Federal bankruptcy rules decide how corporations in Augusta, GA go out of business or recover from crippling financial crisis. A bankrupt company may use Chapter 11 of the Federal Bankruptcy Code to reorganize its business and attempt to become profitable again. Management continues to operate the day-to-day business activities, however all major business decisions must be approved by a bankruptcy court.

A debtor under Chapter 11 can enter into an agreement with creditors under which all or a part of the business continues. The business’s debts are restructured so as to allow the debtor to continue his operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 case in Augusta, GA. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the filing of the bankruptcy proceeding. Under a typical reorganization plan, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real estate to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is typically five to ten years.

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